Factors That Influence Pricing
As a broad generalisation, there are two really significant influencers that act on the price you pay for commercial software:
â—‹ Overheads in the form of the sales team.
â—‹ Variable costs based on the number of records taken-up in the database.
Of course, there’s a lot more complexity and nuance in the underlying model – but these are the key factors that determine a sustainable price point.
For any service provider operating through an outbound sales process, the price of commercial software is hugely inflated by the act of selling it to the customer. This is quite intuitive when you consider the salary and commission structure that salespeople enjoy.
To draw an analogy, the price a consumer pays for a can of drink is largely a reflection of the cost of the cost of the can – and has relatively little to do with the actual product.
This is why we have chosen to enable self-registration with a free trial. Major brands operating across different verticals such as Microsoft and HubSpot have demonstrated successfully that user-driven onboarding allows for an excellent service to be delivered at reasonable and accessible prices.
When food manufacturers invest in management software, we believe the price should support the systems and capabilities – not the sales process.